The Securities and Exchange Commission (SEC) has settled charges with Bitqyck following the crypto exchange’s alleged defrauding of investors.
The complaint against Bitqyck, filed at the US District Court for the Northern District of Texas, contended that founders Bruce Bise and Sam Mendez sold two unregistered digital assets, Bitqy and BitqyM, on an unregistered exchange to derive profits totalling over $13 million.
These actions led to investors of Bitqyck losing over two thirds of their investments.
It was also argued that Bise and Mendez “misrepresented” the deals platform QyckDeals by claiming it to be a “global online marketplace” that provided participants with small shares of Bitqyck cryptocurrency mining stock, which transpired to not exist.
David Peavler, director of the SEC’s Fort Worth regional office in Texas, commented: “Because digital investment assets represent a new and exciting technology, they can be very alluring, especially if investors believe they will own part of the operations. We allege that the defendants took advantage of investors’ appetite for these investments and fraudulently raised millions of dollars by lying about their business.”
The SEC’s complaint seeks permanent injunctions, civil money penalties, and return of the profits derived from dishonest activity.
Bise and Mendez agreed to final judgments for all injunctive relief. Bitqyck was ordered to pay a total disgorgement civil penalty of $8.3 million, while Bise and Mendez were served individual civil penalties of $890,000 and $850,000, respectively.
